HCFA says it's ready for prescription drug plan

Health Care Financing Administration chief Nancy Ann Min DeParle said Monday the agency stands ready to implement President Clinton's plan to provide all seniors with a prescription drug plan through Medicare if it passes Congress in the next few weeks-even if it means launching another round of managed care plan reviews.

The White House wants a prescription drug plan for all Medicare recipients, as opposed to one Republican presidential nominee George W. Bush advocated, which would target only low- income seniors this year, while Congress continues to work on Medicare reforms.

The administration's plan calls for a large, up-front payment to health maintenance organizations that cover Medicare patients. This would enable HMOs to lower premiums and increase benefits, but the HMOs would have to quickly revise their coverage plans for next year. HMOs were required to file their plans by July 1.

At an American Association of Health Plans briefing, DeParle said HCFA was prepared to review new plans this year.

But DeParle said it was increasingly unlikely a comprehensive bill would pass before Congress adjourns. "There's not enough time to get the details down," she said.

Senate Republicans are hoping to push a stopgap measure similar to Bush's plan in the next few weeks. It would provide state-based coverage to the neediest seniors, who make less than 175 percent of poverty level-about $14,600 for a single person.

But the White House says state-based programs are not the most effective way to increase low-income seniors' benefits.

A preliminary analysis released Sunday by the OMB says nearly two-thirds of Medicare beneficiaries would not be eligible under Senate Finance Chairman Roth's proposal.

OMB also notes that because state-based programs have historically low participation rates, it would take longer for states to implement a program, and enrollment would eventually be capped as federal money displaced existing state money.

Meanwhile, DeParle announced to her staff Monday that she is leaving the agency next month after three years to become a fellow at the Institute of Politics and the Interfaculty Health Policy Forum at Harvard University's Kennedy School of Government for the fall semester.

"There is no right time to leave the gratifying and important work we have shared, so leaving is very hard," DeParle said in an e-mail to HCFA staff.

Deputy Administrator Michael Hash will take over as acting administrator.